Standard VI(B) – Priority of Transactions specifies that investment transactions for clients or employers must take precedence over investment transactions for a CFA member. Compliance Reinforcing loyalty to clients, Standard VI(B) – Priority of Transactions clearly indicates that the order…

Standard VI – Conflicts of Interest Within any business organization, there are bound to be conflicts of interest and loyalty, leading to an ethical dilemma. Standard VI specifies that CFA members and candidates must disclose any potential conflicts between clients and…

Standard V(C) – Record Retention indicates that CFA members must develop a method for maintaining records for analysis, recommendations, and actions.

Economists focus on the nature of competition and the pricing model in a particular market for describing a market structure. Since how firms price their products depends on the market structure, pricing, therefore, depends on competition. A market structure can…

The aggregate output of an economy is the value of all the goods and services produced within a predetermined period of time. On the other hand, aggregate income refers to the economic value of all payments received by the suppliers…

Concentration Ratio The concentration ratio is the sum of market shares covered by the largest N firms. It requires one to find the sum of the value of sales for the largest firms and divides them by the total market…

A pricing strategy can be described as the methods that the firms use to price their products and services. Companies and firms always set prices in accordance with the market structure they fall in.

A discrete random variable can take on a finite/countable number of values. It is a random variable where it is possible to list all the outcomes. Recall that a random variable is just a quantity whose future outcomes are not…

A cumulative distribution function, F(x), gives the probability that the random variable X is less than or equal to x, for every value x i.e. P(X ≤ x) By analogy, this concept is very similar to the cumulative relative frequency.

Probability Distribution The probability distribution of a random variable “X” is basically a graphical presentation of the probabilities of all possible outcomes of X. A random variable is any quantity for which more than one value is possible, for instance,…